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Supply Chain Management Essay

3093 words - 13 pages

SIBM,Bengaluru |
Supply Chain Management
Assignment :Set 1 |


Karthik Periyasamy P

Question: 1
You are the manager of Strategic Sourcing at Toyota Motor Corp and have just been called by the VP of global sourcing to whom you report. There has been a problem with the least 8 vehicles exhibiting sticking accelerator pedals and your boss is upset. Strong Evidence points to a problem with CTS, an electronic supplier, which has been recognized for high quality standards by the Toyota.

a) Identify the exact sequence of steps - a project plan - on how to handle this problem, from dealing with customers to identifying causes. Explain what should be done ...view middle of the document...

b) What should be said to your customers? How should you explain the problem?
The major portion of this question has been already answered in the previous question. The most critical step is to find out if there are any more defective cars being delivered to the customers. This has to be done through the dealers who have delivered the cars to the customers and if there are any such defective cars out in the market or with the customers those have to be recalled for fixing the issues. This is one of the crucial steps of customer relationship management.
An appropriate message needs to be conveyed to the customers so that they feel the issue is very minor and can be fixed at the shortest duration and the cars will be delivered back at the earliest. In the meanwhile, a continuous updates have to be provided to the customers regarding the fixing process of their cars and when can it be delivered. This makes them feel they are being taken care.

c) What information do you want to collect and from whom to identify causes?
The primary information to be collected from the supplier as the cause of the problem is identified from the supplier side is about the severity of the issue. This helps in planning the rollback of the defective cars from the customers as these cars are already on roads. Before having a discussion with the supplier, an investigative or research team needs to be setup which can understand the problem and suggest for alternatives or solutions. On having done these homework the supplier can be called over for knowing the cause of the problem in terms of quality of the materials used or manufacturing skills of the employees and so on. Finding the root cause of the issue is important to not to let the problem recur

d) What should you say to your supplier? How should you say it (e.g. In Public or Private: in a meeting or in writing)? What action do you expect them to take?
The supplier needs to be retained as he is identified as one of the key suppliers for a long time now. A constructive and well co-ordinated discussion has to be initiated by inviting the supplier on to the production floor and having the defective car being worked upon. This makes the supplier realize that the problem truly exists and is genuine.
This has to be conveyed in private as the relationship with the supplier is important to carry on. As explained earlier, a discussion can be initiated to let the supplier know about it.
It is expected that the supplier research and find the true problem and see to it that the issue never recurs. It is advisable them to check if the problem is in the quality of the materials procured by them or with the...

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